Securities sector may open wider to foreign partners

China is considering sweeping changes to its securities industry that would allow foreign banks to control their local joint ventures and broaden their offerings, according to people with knowledge of the matter.

Overseas firms could be allowed to own majority stakes in local ventures as soon as this year, and they may ultimately be able to take full control, said the people. Regulators also plan to give foreign-owned joint ventures permission to expand into areas beyond stock and bond underwriting, sources said, asking not to be named.

Loosening restrictions that currently limit overseas banks to 49 percent ownership will let them more effectively compete with incumbents such as CITIC Securities Co in Asia's largest equities market.